Japan's decline in exports slows

Japan exports are beginning to recover

Japan's exports in November were down 6.2% compared with the same point last year, a sharp improvement from the fall of 23% the previous month.

Official figures showed that November's decline in exports was the smallest in 14 months. It led to a trade surplus of 373.93bn yen ($4.1bn; £2.6bn).

Recovering demand in Asia is helping Japan's exports, but there is still concern about the strength of the yen.

The Japanese currency hit a 14-year high against the dollar in November.

It is now trading at about 90.41 per dollar.

"Exports are steadily recovering", said Hideyuki Araki from Resona Research Institute. "Production activity is also expected to gradually recover."

However, he added that the yen was likely to stay strong for a while, which could hurt profits at Japanese companies which in turn could hurt employment and company spending.

Imports fell 16.8% in November. Exports to the rest of Asia increased 4.7% while exports to China, its biggest trading partner, rose 7.8%.

Japan's economy, which is driven by exports, came out of recession in the April-June quarter but there have been concerns about the strength of its recovery.

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